Salida Capital Freezes Three Funds That Used Lehman as Broker

Bloomberg – Salida Capital Corp., a Toronto-based hedge-fund manager with assets of about C$900 million ($834 million), halted redemptions on three of its funds after the bankruptcy of Lehman Brothers Holdings Inc.

Lehman acted as prime broker for Salida’s C$157 million Global Opportunity Fund, the C$85 million Global Prospector Fund and the C$64 million Global Arbitrage Fund, Managing Director Courtenay Wolfe said in an interview.

Salida is one of dozens of investment managers worldwide whose Lehman prime-brokerage accounts were frozen when the New York-based company filed for protection from creditors on Sept. 15. Large securities firms such as Lehman typically offer prime brokerage services to hedge funds and professional investors that borrow stock and cash to invest.

“The Lehman issue is something we are navigating through,” Wolfe said today in a telephone interview from Toronto. “We are working very hard to get the securities back for our firm and our investors because we believe they are rightfully and legally ours.”